Schemes & programs of MSME

Entrepreneurship Development Programmes (EDPs)

Entrepreneurship Development is one of the key elements for promotion of micro and small enterprises, particularly, the first generation entrepreneurs. Entrepreneurship, and resultant creation of employment and wealth, is a major means for inclusive development. Hence, entrepreneurship development has been one of the priorities in countries, the world over.

The Office of DC (MSME) conducts a large number of vocational and entrepreneurship development programmes. While vocational training is implemented by various Departments of the Government, the responsibility of entrepreneurship development lies largely with this office. The Entrepreneurship Development Programmes (EDPs) are conducted through MSME-DIs, with focus on entrepreneurial development coupled with specific skills relating to trades like electronics, electrical, food processing, etc, which enables the trainees to start their own ventures. The programmes covered include the following:

1. Industrial Motivation Campaigns (IMCs)

2. Entrepreneurship Development Programmes (EDPs)

3 Entrepreneurship Skill Development Programme (ESDPs)

4. Management Development Programmes (MDPs)

20% of the targeted EDPs and ESDPs are conducted exclusively for the weaker sections of the Society (SC/ST/Women/Physically Handicapped), for which no fee is charged. Besides, a stipend of Rs.125/- per week per candidate is provided.

Biotechnology is a frontier area of modern science and technology having significant commercial applications in healthcare, agriculture, and industry and environment sector. India is better placed to harness the potential of biotechnology due to its advantages of technical

43

expertise, skilled manpower, rich bio-resources and progressive Government policies.

Entrepreneurship Skill Development Programmmes (ESDPs) on biotechnology are also conducted to promote entrepreneurship activities in Biotechnology as well as promoting biotechnology enterprises.

Salient features of these training/motivation programmes are as follows.

Industrial Motivation Campaigns

Industrial Motivation Campaigns are organized to identify and motivate traditional/non-traditional entrepreneurs having potential for setting up MSEs so as to lead them towards self-employment. The programme outlines are as follows:

1.	Agency	:	These programmes are conducted by
			MSME- DIs
2.	Duration	:	One day
3.	Intake  Capacity	:	No limit
4.	Training Fee	:	No Fee
5.	Age of Participants	:  18 Years and above
6.	Qualification	:	As decided by the Director of the
			institute

Entrepreneurship Development Programmes (EDPs)

Entrepreneurship Development Programmes are being organized to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up MSEs. These EDPs are generally conducted in ITIs, Polytechnics and other technical institutions, where skill is available to motivate them towards self-employment.

44

The course contents of the Entrepreneurship Development Programmes are designed to provide useful information on product/ process design, manufacturing practices involved, testing and quality control, selection and usage of appropriate machinery and equipments, project profile preparation, marketing avenues/ techniques, product/service pricing, export oppor tunities, infrastructure facilities available, finance and financial institutions, cash flow, etc. The programme outlines are as follows:

1.	Agency	:	These training programmes are
			conducted by MSME-DIs
2.	Duration	:	2 weeks

3. Minimum Intake Capacity :  20

4.	Training Fee (Minimum)	:  (1)	Rs.100/- for general candidates.
		(2)	No fees for SC/ST and
			50% fee from women and
			physically handicapped.
5.	Age  of Participants	:  18 Years and above
6.	Qualification	:  As decided by the Director of the
		institute

Entrepreneurship Skill Development Programmes (ESDPs)

Comprehensive training programmes are organized to upgrade skills of prospective entrepreneurs, existing workforce and also develop skills of new workers and technicians of MSEs by organizing various technical-cum-skill development training programmes with the basic objective of providing training for their skill upgradation and to equip them with better and improved technological skills of production. The specific tailor made programmes for the skill development of socially disadvantaged groups (OBC, SC/ST, minorities and women) are organized in various regions of the states, including the less

45

developed areas. The target group for these programmes are SC, ST, OBC, women, minorities and other weaker sections.

Courses conducted are in Machine Shop Practice, Heat Treatments, Electroplating, Sheet metal, Welding, Tool & Die Making, Glass & Ceramics, Industrial & Art Wares, Herbal Cosmetics, Fashion Garments, Hosiery, Food & Fruit Processing Industries, Information Technology, Hardware Maintenance, Soap and Detergents, Leather Products/Novelties, Servicing of Household Electrical Appliances and Electronic Gadgets, Gem Cutting & Polishing, Engineering Plastics etc.

The programme outlines are as follows:

1.	Agency	:	These training programmes are
			conducted by MSME-DIs
2.	Duration	:	6 weeks

3. Minimum Intake Capacity :  20 No. in each programme

4.	Age  of Participants	:  18 Years and above
5.	Qualification	:  As decided by the Director of the
		institute
6.	Training Fee	:  (1)	Rs. 200/- for general candidates.
		(2)	No fees for SC/ST and
			50% fee from women and
			physically handicapped

Management Development Programmes (MDPs)

The objective of imparting training on management practice system is to improve their decision-making capabilities resulting in higher productivity and profitability of existing and potential entrepreneurs and developing new enterprises. Inputs on a variety of topics of managerial functions are provided to the participants by experts, which aims at dissemination of knowledge of scientific/modern management techniques/practices.

46

Management Training course on various areas of industrial management are devised for owner-cum-manager and supervisory level personnel of small scale industries. These training programmes are designed keeping in view the demands of the area and the local requirements of the industries. The nature of target groups and its profile determines the course content to be made in order to make them suitable for contemporary managerial practices which may be used by MSMEs executives for attaining desired strength of managerial action. The various topics covered under these training programmes pertain to various Management functions like Industrial Management, Human Resource Management, Marketing Management, Export Management & Documentation, Materials Management, Financial Management, Information Technology & Exports, ISO 9000, WTO, IPR etc.

1.	Agency	:	These training programmes are
			conducted by MSME-DIs
2.	Duration	:	One-week for full time and two-
			weeks for part time

3. Minimum Intake Capacity :  20 Nos.

4.	Training Fee	:  (1)	Rs. 400/- for general candidates.
		(2)	No fees for SC/ST and
			50% fee from women and
			physically handicapped
		(3)	Rs. 100/- for candidates from
			Andaman & Nicobar,
			Lakshadweep, NE States,
			J&K and Sikkim
5.	Age  of Participants	:  18 Years and above
6.	Qualification	:  As decided by the Director of the
		institute

47

Tailor Made Business Skill Development Programme (BSDP)

The programme has been devised to encourage educated youth (students) basically the final year and pre-final year students of Business Schools/Technical Institutes to start self-employment ventures of micro or small enterprises and thus instrumental in employment generation. The programme is known as Business Skill Development Programme (BSDP).

The programmes provide useful information on Product/Process design, Manufacturing Process involved, Testing, Selection and Usage of appropriate machinery and equipment, Marketing avenues/ techniques, product /service pricing, export opportunities, cash flow, field visits to small scale units, market study, preparation of project profiles, ISO, Quality management tools etc.

These 22 working days programmes are conducted by MSME-DIs jointly with selected Business Schools/Engineering Colleges in their respective jurisdictions. The participating institute/college need to be AICTE approved and should have a cell for entrepreneurship development functioning for the last three years. No fee is charged toward training under this programme.

Scheme to Support 5 Selected Universities to Run 1,200 Entrepreneurship Clubs

The scheme is also known as e-club scheme. It provides support to form entrepreneurship club at select universities throughout India so that a kind of communication between universities, entrepreneurs, development institutes and students can be established by providing financial help in formation and maintenance of e-club at universities.

This scheme aims to develop linkages of the entrepreneurs with the knowledge institutions while MSME-Development Institutes (MSME-DIs) act as a facilitator. In addition, it provides a base to entrepreneurs for coming together to solve their common problems, a shift from Lobbying Mode to Facilitation Mode, giving hard intervention in the

48

form of technology and soft intervention like arranging workshops, seminars, guidelines to obtain ISO Certification, ISI Marks, participation in Trade Fairs, implementation of Quality Management Tools.

Salient Features

(i) The scheme is to support 5 universities to run Entrepreneurship Clubs (One each from Northern, Western, Southern, Eastern and North Eastern Region).

(ii) The Universities with whom the MSME-DIs have signed MoUs are:

(a) For the Northern Region–GGSIP University, New Delhi

(b) For Southern Region–Vellore Institute of Technology, Vellore

(c) For Eastern Region–Ravenshaw University, Cuttack

(d) For North Eastern Region- Guwahati University, Guwahati

(e) For Western Region–Rajasthan Technical University, Kota, Rajasthan.

49

Rajiv Gandhi Udyami Mitra Yojana (RGUMY)

Objectives

The objective of Rajiv Gandhi Udyami Mitra Yojana (RGUMY) is to provide handholding support and assistance to the potential first generation entrepreneurs, through the selected lead agencies i.e. ‘Udyami Mitras’, in the establishment and management of the new enterprise, completion of various formalities required for setting up and running of the enterprise and in dealing with various procedural and legal hurdles. Under this Scheme, the selected lead agencies i.e. ‘Udyami Mitras’ provide guidance and assistance to the potential entrepreneurs registered with them, in preparation of project report; arranging finance; selection of technology; marketing tie-ups with buyers; installation of plant and machinery as well as obtaining various approvals, clearances and NOCs etc.

Apex organizations under the Ministry, namely, Office of DC (MSME), KVIC, NSIC and three national level EDIs through their field offices are working as deemed Udyami Mitras. The eligible organizations at State level and District level duly recommended by the concerned State Commissioner/Director (Industries), are also empanelled as Udyami Mitras. The Udyami Mitras are paid handholding charges under the Scheme, including nominal contribution of the concerned entrepreneur. However, the beneficiaries belonging to SC/ST/ Physically Handicapped/Women and beneficiaries from NER are not required to pay any contribution to Udyami Mitra for availing the handholding support. Funds have been released to apex Organizations and Director/Commissioner (Industries) in all States and Union Territories for implementing the Scheme.

A new component has been added in the existing scheme of ‘Rajiv Gandhi Udyami Mitra Yojana’ (RGUMY), namely, ‘Udyami Helpline’ to give free access of information and guidance to potential

50

entrepreneurs throughout the country by making a provision of toll free Telephone Number 1800-180-6763. Under this component, any potential entrepreneur desirous of getting any information regarding schemes of Ministry of MSME or anything related to small businesses may get information by dialling up this toll free number. A Call Centre with trained manpower has been put in place under this component to give information as well as guidance to potential entrepreneurs.

51

Assistance to Training Institutions

Objectives

This Scheme envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance is provided to these training institutes in the form of capital grant for creation/strengthening of infrastructure. The scheme has been evaluated and modified on the recommendations of the evaluation study. In the modified scheme there are three components of this Scheme.

(i) The first component provides financial assistance to three National level Entrepreneurship Development Training Institutes (EDIs) working under the aegis of this Ministry, viz., National Institute for Micro, Small and Medium Enterprises (NIMSME), Hyderabad, National Institute for Entrepreneurship & Small Business Development (NIESBUD), Noida and Indian Institute for Entrepreneurship(IIE), Guwahati for meeting their revenue deficit and capital expenditure.

(ii) The Second component provides financial assistance for strengthening training infrastructure of the existing and new Entrepreneurship Development Institute (EDIs) at State/UT level. Entrepreneurship development is one of the key elements for promotion of micro and small enterprises, particularly, the first generation entrepreneurs. Hence, entrepreneurship development has been one of the priorities in countries world over. The Government make consistent and concerted efforts to strengthen and revitalize the promotion of entrepreneurship. The Ministry of MSME promotes the development of small scale

52

industries in the country with the objective of creating self-employment opportunities and upgradation of management and technical skills of existing and potential entrepreneurs. The scheme of Entrepreneurship Development Institutes (EDIs) was launched in 1992-93 to provide financial assistance for strengthening training infrastructure of the existing and new entrepreneurship development institutes at State/UT level. The scheme envisages providing financial assistance to State sponsored existing and proposed institutions meant for supporting entrepreneurship development and self-employment activities training, consultancy and research in tune with the policy measures announced by the Government of India on promoting and strengthening of micro and small enterprises. The Central assistance is expected to be only catalytic and supplementary to the contributions and efforts of the States/ UT Governments and other agencies, namely, institutions engaged in entrepreneurship development, technical education institutions, management institutions and financial institutions, and is expected to augment the existing entrepreneurship development training capacity in the country. The ceiling of financial assistance has been raised from Rs.100.00 lakh to Rs.150.00 lakh or 50% of the project cost whichever is less and in the case of North East Region including Sikkim and Andaman & Nicobar islands including Lakshadweep, the central assistance would be 90% of the project cost or Rs. 270.00 lakh, whichever is less. 29 EDIs have so far been financially assisted under this scheme.

(iii) The third component of the scheme Assistance to Training Programmes provides assistance for Training Programmes. Assistance is provided under the scheme to the Training Institutions for conducting Entrepreneurship Development Programmes (EDPs) and Entrepreneurship-cum-Skill Development Programmes (ESDPs) and Training of Trainers (ToTs) programmes in the areas of Entrepreneurship and/or Skill Development. Assistance is normally provided for short term

53

courses/training programmes (non-residential) only, i.e. ESDPs for 1 to 3 months (100 to 300 hours of training inputs), EDPs for 2 weeks (72 hours of training inputs) and ToT programmes (300 hours of training inputs).

The concerned training institution would be free to decide the training fee for various training programmes viz. EDP/ESDP/ToT being conducted by it. However, the assistance under the scheme would depend on the duration of the training programme (number of hours of training inputs) and would be limited to following rates or actual fee charged, whichever is less:

Particulars	Maximum assistance per
	trainee per hour (Rs)

SC/ST/Physically Handicapped (PH)/North Eastern Region (including Sikkim), Union Territories of Andaman & Nicobar and Lakshadweep Islands (NER+)

District Headquarter (HQ)	60/-
Urban areas other than District HQ	50/-
Rural areas	40/-
Others
District HQ	50/-
Urban areas other than District HQ	40/-
Rural areas	30

Assistance for Training of Trainers (ToTs) programmes would be provided @ Rs 60 per trainee per hour.

The trainees would be expected to make their own arrangement for travel and stay during the training period. In case the residential facility is provided by the Training Institution, it may charge the same from the trainee. It would be permissible to dovetail the assistance under this scheme with facilities/benefits available under schemes

54

of other Ministries/Departments/State/UT Governments etc. for reimbursement of travel, boarding and lodging expenses and stipend etc. However, it would be the responsibility of the Training Institution to ensure that there is no duplication and assistance for the same purpose that is not claimed under more than one scheme.

55

National Award Scheme for MSMEs

The Ministry of Micro, Small & Medium Enterprises with a view to recognize the efforts and contribution of MSMEs gives National Award annually to selected entrepreneurs and enterprises under the scheme of National Award.

The awards are given for various categories in Research and Development Efforts, Entrepreneurship and Quality Products. The First, Second and Third National Award carry a cash prize of Rs.1,00,000/-, Rs. 75,000/- and Rs. 50,000/- respectively, a certificate and a trophy. Selection for awards is made on the basis of a set criteria exclusively designed to evaluate performance of the MSMEs. The awards to the selected entrepreneurs are given in a National Function organized by Office of the DC(MSME).

Besides Awards to the entrepreneurs, awards are also given to banks for lending to MSME. Under the scheme an exhibition is also organized for MSMEs during the India International Trade Fair (IITF) at Pragati Maidan to exhibit products manufactured by MSMEs and National Awardees.

Types of Awards

The awards are given for following categories:

(i) National Award for Outstanding Entrepreneurship in Micro & Small Enterprises Engaged in Manufacturing

1. First National Award : Rs.1,00,000/-cash prize, a Trophy and a Certificate

2. Second National Award : Rs. 75,000/- cash prize, a Trophy and a Certificate

3. Third National Award : Rs. 50,000/- cash prize, a Trophy and a Certificate

4. Special  National  Award  to  Outstanding  Woman

56

Entrepreneur : Rs.1,00,000/- cash prize, a Trophy and a Certificate

5. Special National Award to Outstanding SC/ST Entrepreneur: Rs.1,00,000/- cash prize, a Trophy and a Certificate

6. Special National Award to Outstanding Entrepreneur from NER including Sikkim : Rs.1,00,000/- cash prize, a Trophy and a Certificate.

(ii) National Award for Outstanding Entrepreneurship in Micro & Small Enterprises Rendering Services

1. First National Award : Rs. 1,00,000/- cash prize, a Trophy and a Certificate

2. Second National Award : Rs. 75,000/- cash prize, a Trophy and a Certificate.

(iii) National Award for Outstanding Entrepreneurship in Medium Enterprises Engaged in Manufacturing

1. First National Award : Rs. 1,00,000/- cash prize, a Trophy and a Certificate

2. Second National Award : Rs. 75,000/- cash prize, a Trophy and a Certificate.

(iv) National Awards for Research & Development Efforts in Micro & Small Enterprises

1. First National Award : Rs. 1,00,000/- cash prize, a Trophy and a Certificate

2. Second National Award : Rs. 75,000/- cash prize, a Trophy and a Certificate.

(v) National Awards for Research & Development Efforts in Medium Enterprises

1. First National Award : Rs.1,00,000/- cash prize, a Trophy and a Certificate

57

2. Second National Award : Rs. 75,000/- cash prize, a Trophy and a Certificate.

(vi) National Awards for the selected Product Group for Quality Products in Micro & Small Enterprises (MSEs)

Every year Product groups (10-15 Nos.) are selected for quality award. One award is given in each group. Each award carries Rs.1.00 lakh cash prize, a Certificate and a Trophy.

(vii) Special Recognition Award in all above Categories

Special Recognition Award in all above categories is given to those MSMEs scoring marks above 80% in all categories and 50% in case of North Eastern Region including Sikkim with a cash prize of Rs. 20,000/-, a Certificate and a Trophy.

(viii) National Award to Banks for Excellence in MSE Lending

1. First National Award : A Trophy and a Certificate

2. Second National Award : A Trophy and a Certificate

3. Special Award : A Trophy and a Certificate

(ix) National Award to Banks for Excellence in Micro Lending

1. First National Award : A Trophy and a Certificate

2. Second National Award : A Trophy and a Certificate

3. Special Award : A Trophy and a Certificate

Periodicity and Eligibility

The Awards are given for every calendar year to deserving entrepreneurs of Micro, Small and Medium Enterprises having permanent registration/have filed Entrepreneurs Memorandum with the authorities notified by respective State Governments/UT Administration in accordance with the provisions contained in the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, which came into force on October 2, 2006. The MSMEs should

58

have been in continuous production/service for last three years. There will be no bar for Awardees to be nominated or considered for a higher Award in the subsequent year. The Awardees should not be nominated or considered for the same or lower Award in the subsequent five year(s).

Procedure for Selection

(i) Applications from MSMEs are invited through Advertisement in National/Regional Newspapers, Website on DC(MSME). Applications are received at MSME-DIs in their respective States.

(ii) Applications are evaluated by State Level Selection Committee (SLSC) under the chairmanship of Secretary (Industries) of the respective states and recommended and forwarded to the O/o DC(MSME). Minimum Qualifying marks are 60% general categories and 50% in case of SC/ST and NER.

(iii) The applications recommended by SLSC are further scrutinized/ evaluated by Technical Officers of the O/o DC (MSME).

(iv) The applications are scrutinized and awardees are selected by National Level Selection Committee(NLSC) under the chairmanship of AS&DC with approval of Hon’ble Minister (MSME).

(v) The selection of banks for awards is made on the basis of criteria devised by the Standing Committee constituted under the Chairmanship of AS&DC(MSME).

Scheme for Capacity Building, Strengthening of Database and Advocacy by Industry/Enterprise Associations and for holding Seminar/Symposiums/Workshops by the Associations

It has been felt that the associations of Micro, Small and Medium Enterprise do not have adequate capacity to collect and interpret data relating to changes in the market scenario, owing to the limited availability of funds and the absence of expertise in the matter. As a

59

result, their articulation of views on specific issues concerning to their product group leaves much to be desired. In spite of the fact that the Associations of the MSEs have been made members of the SSI Board and the members of the screening committee of certain national programmes for development of some products, their existing weakness prevent them from playing the expected role effectively. Even in their role as facilitators for their members in government assisted schemes like setting up of sub-contracting exchanges, testing laboratories etc., the capacity of these associations has been found to be deficient.

To strengthen their role and increase their efficiency, financial assistance has been proposed for the secretarial and advisory/ extension services of the selected associations depending on the size and the reach of the associations. The beneficiary association is to provide the regular manpower and office space at their own cost and also to bear 50 percent of the cost of modernization of their facilities, equipment and training of their personnel.

Under the scheme, National/Regional/State/Local level Industry Association, which are registered for at least 3 years and are having a regular charter, list of members and audited accounts etc; would be eligible for the financial assistance for strengthening of database as well as for conducting Seminars/Symposiums/Workshops.

The scheme provides assistance for strengthening of Database– Financial assistance for the Secretarial, Advisory/Extension services up to a maximum of Rs. 5 lakh and for organizing Seminars/ Symposiums/Workshops by the associations up to a maximum of Rs. 2 lakh.